CARMEL – Members of the Putnam Legislature have spent months debating retiree health benefits, and following action taken by the legislature’s Personnel Committee, the committee is now ready to offer a targeted retiree incentive that encourages higher-compensated employees to retire earlier in exchange for a modified schedule of retiree health insurance benefits.
According to Acting Personnel Director Adriene Iasoni, 87 percent of Putnam’s retirees are Medicare eligible.
Updated retiree contributions proposed by the committee will result in the following schedule:
If an employee collects a pension of less than $10,000 a year he or she would pay eight percent of their health benefits, while those collecting between $10,000 and $29,999 would pay 10 percent; those collecting $30,000 to $84,999 would pay 17 percent, and those collecting more than $85,000 would pay 20 percent with the county paying the remainder.
Under the county’s new contribution schedule, a retiree receiving an $18,000 annual pension would pay $715, or 10 percent of the $7,156 premium. The county would cover the remaining $6,440.
Legislature Chairperson Dan Birmingham noted that the county has $6 million set aside for retirees – which should be more than enough for the county to meet its obligations.
Medicare rates charged to the county have been increasing dramatically.
Officials said during the past year Medicare Family 1—family coverage with one enrolled in Medicare has increased by more than 20 percent.
The full legislature is expected to approve the new schedule at its Oct. 6 meeting.
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